Outlook Business Desk
India’s four new Labour Codes came into effect on Friday, replacing 29 older laws. These reforms simplify labour regulations, modernise the legal framework and aim to improve worker welfare across all sectors nationwide.
The four codes include the Code of Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020), and the Occupational Safety, Health and Working Conditions Code (2020), unifying labour rules under a modern framework.
The laws introduce consistent wage rules, stronger safety requirements, and simplified compliance for employers. Prime Minister Narendra Modi described these reforms as the most significant labour changes in India since independence.
Union Labour Minister Mansukh Mandaviya outlined key benefits under the new codes, including guaranteed minimum wages, appointment letters, equal pay for women, social security for 40 crore workers, gratuity for fixed-term staff, health check-ups, and full safety in hazardous industries.
Fixed-term employees will now enjoy the same wages, leave, medical, and social security benefits as permanent staff. Gratuity eligibility is reduced from five years to one, encouraging direct hiring and lowering over-contractualisation.
Gig and platform workers now have clearly defined roles, mandatory social security contributions from aggregators, and Aadhaar-linked Universal Account Numbers, providing portable welfare and improved protections for India’s evolving employment landscape.
Women workers receive protection from discrimination, equal pay, consent-based night shifts, and mandatory grievance committee representation. On the other hand, youth workers are ensured minimum wages, appointment letters, paid leave, and compliance with national floor wage standards.
MSME workers gain social security, access to canteens and rest areas, standard working hours, and overtime pay. Additionally, IT and ITES employees receive timely salaries by the 7th, equal pay, safety measures, social security, and quicker dispute resolution.
Cross-sector reforms introduce a national floor wage, gender-neutral pay, single registration and licensing, safety committees for 500+ workers, a unified Occupational Safety and Health board, inspector guidance, faster dispute resolution, and simpler compliance for smaller units.